While using a vacuum cleaner, our homeowners insured ran her hand over the power cord and touched a frayed wire. Her hand was burned and her engagement ring damaged. The ring melted from the contact with the wire, loosening the prongs and the 1/2 karat diamond popped out and disappeared. We think that the damage to the ring and the lost diamond are covered under the peril of "sudden and accidental damage from artificially generated electrical current," but would like your interpretation.

North Carolina Subscriber

Electrical current created by a power plant and flowing from a household appliance is "artificially generated" (it is neither lightning nor static). Although this type of claim was almost certainly not within the contemplation of the form drafters (since the most common type of damage by this peril is to electronic equipment), there is nothing in the form that would exclude or limit its application to this situation.

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